China’s government bonds outpaced their competitors in the first quarter as their haven status helped them stand out as a bulwark amid the global slump. Japan’s securities led developed nations, though still handing investors a narrow loss.
The two north Asian markets helped investors preserve value as signs of a burgeoning global recovery amid the rollout of vaccines pushed up debt yields around the world. A Bloomberg Barclays index of global bonds slid 5.5% in the first three months of the year, the worst quarter in four years. China and Japan had another thing in their favor too: they had the lowest volatility among 44 debt markets tracked by Bloomberg.